…

Cyber insurance

Why you need cyber insurance

It’s usually big business like Uber, Pizza Hut, Yahoo, Equifax, and Bupa that you hear about in the news1 but small and medium-sized businesses face the same threat of being hacked. According to a recent report, cyber attacks are now seen as the single biggest threat to UK businesses2, yet only 10% of SMEs have cyber insurance in place should the worst happen3.

Don’t assume that cyber cover is included under your existing business insurance policy. This often isn’t the case, so you may need to take out a separate policy to provide the cover you need.

If you so much as gather or store customer, supplier, or employee data, including sensitive information like payment details, you have a cyber risk exposure.

You might think a data breach is unlikely, but bear in mind that one in two SMEs suffered a cyber security breach in 20172.

Managing cyber risks

Make no mistake, incidents can have very serious consequences – depending on the severity of the attack, costs can range from £1,400 to £2.48 million1.

Alongside clean-up costs and potential fines, it’s important to consider the long-term effect of a cyber incident on customer trust and reputation.

With GDPR (General Data Protection Regulation) legislation in force from 25th May 2018, the processes, practices and security of handling customer and supplier data has been brought into sharp focus. There is no better time to take another look at how cyber liability insurance can help you.

How cyber insurance can help

We have a range of comprehensive cyber insurance solutions available, which includes more than just helping to resolve the “hacking” itself, but provides emergency response in the event of an incident.

The extensive cover available can include:

  • Cyber, data security, and multi-media cover.
    This covers any allegations of loss from the firm’s customers, including all defence costs.
  • Data beach notification costs.
    Includes cover for the costs of notifying any affected clients of the data breach.
  • Regulatory defence and penalty costs cover.
    Ensures costs of defending any ICO investigation and any fine will be paid if legally insurable.
  • Public relations costs cover.
    Covers the costs of PR consultants to minimise damage to your brand and operations of the recruiter.
  • Forensics costs cover.
    Any costs incurred in investigating the breach, recommending a fix and temporary storage of data on a secure server will be covered.
  • Credit monitoring costs.
    In this case any costs of monitoring the credit files to spot potential misuse or ID theft will be paid for.
  • Cyber business interruption cover.
    This covers any identifiable loss of profit for the recruiter through being unable to trade properly, and will reimbursed.

Sources:
1 https://www.techworld.com/security/uks-most-infamous-data-breaches-3604586/
2 Cyber Security: Small Business Guide 2017
3 Ponemon Institute 2017 Cost of Data Breach Study